S/4HANA Cloud vs On-Premise


Choosing a Cloud suite for your business can be pretty challenging. Even more, when you are migrating and do not know much about the technology. You will find many websites and people giving you suggestions to choose this or that platform.

Among those suggestions, you will hear a lot about S/4HANA Cloud and On-Prim. Usually, people compare the two as they have some similarities. However, the differences between the two are vast. With that said, and with Tachyon’s expertise in HANA we want to take a deep dive comparison to give a better picture.

S/4HANA Cloud vs. On-Premise – A quick Guide

  • What is S/4HANA On-Premise?

The S/4HANA On-Premise Edition is an ERP business suite. It is based on the SAP HANA in-memory database that allows users to manage everything. That includes the applications, data centers, HANA database, networking, operating systems, servers, data centers, etc.

  • What is S/4HANA Cloud?

As the name suggests, it is a cloud edition of SAP S/4HANA, which works on SaaS (Software as a Service). It works the same as the on-premises version without depending on the hardware, IT staff, or database. You can offer the SAAS deployment with complete management, thanks to SAP.

  • Differences between S/4HANA Cloud vs. S/4HANA On-Premise
FeaturesS/4HANA On-PremiseS/4HANA Cloud
Licensing ModelThe On-Premise version requires traditional licensing.S/4HANA Cloud works with subscription-based licensing.
CustomizationWith on-premise, you have complete control as it is flexible and manageable.The Cloud version is customizable to some extent but comparatively lesser.
MaintenanceRequires control for deployment and maintenance with a professional IT staff.With the cloud version, you can easily take care of regular maintenance.
SpeedThe on-premise version is slower as it sets up a new environment for the user.The Cloud edition is faster as it uses a ready-made and pre-tested platform.
CostSince the On-premise edition is for enterprises, it is more costly.Cloud version is comparatively lower in cost.
ImplementationIt requires the need of additional hardware as well as software.You can use S/4HANA Cloud without needing any additional hardware or software.
IntegrationsYou get faster data transfer among the system as it allows simple integrations.Integrations in the Cloud Edition can be complex and involve security risks too.
UpgradesWith the on-premise version, you can expect more regular upgrades as the company makes it better and better.The Cloud edition has fewer upgrades but allows you to schedule them.
ScalabilityIf you want to scale up or down, you will find it much harder in the on-premises edition.The S/4HANA Cloud is easier and faster to meet the changing scalability of an organization.
Support PackagesAlthough not consistently, but the company does release new support packages for S/4HANA On-premises.You can choose from the wide range of support packages in the S/4HANA Cloud.

We have discussed the differences between the S/4HANA Cloud and S/4HANA On-premises in detail. It will help you decide which is the better option for your organization, considering your requirements.

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